After a successful crackdown on Bitcoin mining and crypto trading, China is accelerating the rollout of the digital Yuan (e-CNY). The central bank-issued digital currency is now being piloted in Subways.
Today, the Municipal government of Beijing has announced that subway users can now pay for services using the digital Yuan. The announcement states that anyone who has an active digital Yuan app through the Industrial and Commercial Bank of China could pay using the digital yuan.
This is a big deal as it significantly widens the scope of usage of the country’s digital fiat. For context on how big of a deal this is, the Beijing subway has more than 10 million daily users.
It is not just Beijing that is moving towards adopting the e-CNY in its subway system. Yesterday, the government in Suzhou announced that it was also adopting the digital yuan in its subway system.
All these are part of China’s moves towards making the digital Yuan the dominant medium of exchange in the Asian country. The country has also been running a lottery aimed at incentivizing usage. The lottery has given away more than 50 million Yuan to 250k individuals that have downloaded the digital yuan app.
China’s moves align with its stand that it believes in blockchain technology, but not in non-State cryptocurrencies. The country is also emerging as a leader in digital fiat. Several countries have started the rollout, but none so far is as robust as China in this space.